It is a mandatory step to set up Depreciation Books for Fusion Assets.
In the Manage Books page one can set up an unlimited number of independent depreciation books. Each book has its own set of accounting rules and accounts so one can organize and implement ones fixed assets accounting policies.
When defining a tax book, an associated corporate book must be specifies. One can mass copy assets and transactions from the source book into the tax book. One specifies the current open period, and Initial Mass Copy copies each asset into the tax book from the corporate book as of the end of that fiscal year in the corporate book.
An asset can have different financial information and depreciation rules in each book. For example, you can make the asset cost in your tax book different from the cost in the associated corporate book. Because the books are independent, you can run depreciation for each book on a different schedule.
In Oracle Fusion Assets, user access to the data is secured at the asset book level. Each user can view and update the assets only in the asset book to which they have access.
An asset can belong to any number of tax books, but must belong to only one corporate book. New or existing assets must first be added to a corporate book and then can be easily copied to all the associated tax books.
You can set up multiple corporate books that create journal entries for different ledgers, or for the same ledger. In either case, you must run depreciation and create journal entries for each book. For each corporate book, you can set up multiple tax books and associate all of them to the corporate book.
Corporate book(s) have to be set up first if planning to set up tax book(s). Give the book a unique
name and description; pick the book class and the associated ledger. Pick the Depreciation and Prorate Calendar defined earlier. Be careful with the Current Period as this will be the first period
depreciated and it cannot be changed.
Determine whether annual depreciation should be divided evenly over the depreciation periods or whether it should be divided by days in the periods. You can pick today’s date and time for Last
Depreciation Run.
Depreciate if retired in the first year – This option is self-explanatory. If it is not checked, then the
system will back out the year-to-date (YTD) depreciation taken in the fiscal year when the asset is retired
Allow amortized changes – Check the Allow Amortized Changes check box to allow amortized
changes in this book.
Allow cost sign changes – This indicates whether to allow adjustments that change the cost on an
asset from positive to negative or from negative to positive
Allow Impairment – Check the Allow Impairments check box if you want to allow impairments to be
performed in this depreciation book
Allow ledger posting – Check the Allow ledger posting check box if you want to be able to send
journals to General Ledger (GL) from Assets
Capital Gain Threshold Years/Months – This is the minimum time an asset is held to be reported as
a capital gain when retired
Inactive On – The depreciation book is no longer active and usable once a date has been entered in
Annual Depreciation Rounding – This controls whether or not annual rounding is performed for
assets.
• With Restrictions: End of the year adjustments are performed for assets that have no adjustments, revaluations, retirements, transfers, or additions with accumulated depreciation in the current fiscal year. This is the default.
• Always: Annual rounding is performed at the end of the year, even if the assets have been added with accumulated depreciation, adjusted, revalued, reinstated, or transferred in the current fiscal year. • (No Value): Equivalent to With Restrictions
Use Payables invoice date as date placed in service – Enables you to use the Future Transactions
feature by allowing the default date-placed-in-service to be the invoice date, even when the invoice date is in a future accounting period. If you check this check box, Fusion Assets defaults the date- placed-in-service to the invoice date for future transactions. If you leave this check box unchecked, Fusion Assets does not default the date-placed-in-service to the invoice dates, and you cannot use the Future Transactions feature.
Use NBV threshold for depreciation – Allows you to decide whether to depreciate assets using a
depreciation threshold. This option accommodates specific Japanese business rules. In general, your system should depreciate using the depreciation threshold.
Account Defaults – This is the default code combination used as a source for Subledger Accounting
(SLA) where this account code combination is an account combination rule called Book Controls Default Account.
For further details on Subledger Accounting in Fusion Assets see White Paper - Subledger Accounting Setup for Oracle Fusion Assets [ID 1396942.1]. The Oracle® Fusion Applications Asset Lifecycle Management, Assets Guide describes the journal entries created for retirements using the accounts set up in the Accounts zone of the Create Book page.
Deferred Depreciation Expense and Deferred Depreciation Reserve are accounts used when creating only deferred depreciation journals instead of the full standard journals. So, for a corporate book one can actually use ‘dummy’ accounts.
In the Rules zone of the Create Book page one can use the Reference Data Sets, seeded or
previously set up. If using Group Depreciation, then the Group Rules are also set up in the Rules zone of the Rules zone of the Create Book page.
Allow Group Depreciation – Enables the use of group and member assets for a depreciation book.
This option can be checked at a later date, but it cannot be disabled once group/member assets are added to the book.
Allow CIP members – If this check box is checked, then CIP assets are allowed to be added to group
assets.
Allow CIP Depreciation – Check this check box to allow depreciation of member CIP asset cost. This
option can only be checked if CIP members are allowed.
Allow Member Tracking – Allows member asset tracking for group depreciation. If you need to track
depreciation only on the group level then DO NOT check this option.
Allow Intercompany Member - Check this check box to allow the group asset and its member assets
to have a different balancing segment value. If the check box is not checked, the group asset and each of its member assets must have the same balancing segment value.
Once the new asset book is saved, generate data roles or verify the data roles if already generated for the book. To complete the setup for the book you also have to provide these role(s) to the implementation users for the Asset Book(s). See also Can Not Manually Create An Asset. Can Not Select The Depreciation Book [ID 1522776.1].
When setting up a tax book and choosing the Book Class Tax, a third tab appears in the Rules Zone with options for the tax book:
Note: As we plan to create standard journal entries from the tax book, we are using different accounts than in the corporate book.
Allow CIP Assets – Allows CIP assets to exist also in the tax book. Note: They are not copied via
Mass Copy, but get created, adjusted, etc. at the same time the CIP asset is updated via API. Only once the asset is capitalized are the transactions copied via Mass Copy to the tax book.
Allow cost/expense ceilings – Allows to limit the recoverable cost used to calculate annual
depreciation expense. See the chapter on ceilings above.
Copy salvage value – If assets have salvage value then if this check box is checked, it will be copied
to the tax book.
Copy group asset additions and Copy member asset assignments – If Group Depreciation is
allowed for the tax book, Group asset additions get copied to the tax book if checked and asset assignments as members to a group asset are also copied if checked.
Allow Mass Copy – Determines if any transactions are copied at all to the tax book via Mass Copy. If
this option is checked, then one can decide whether to check also to copy additions, adjustments, and retirements.
Copy changes when cost is not synchronized – If the cost in the tax book is not in synch with that
in the corporate book of an asset, i.e. manual transactions were performed in the tax book only that affected cost, then no further transaction on the asset would get copied to the tax book if this option is not checked.
Copy amortized additions and adjustments as expensed – If checked, Amortized